Fraudlent Dealing in Gold

In the recent past there has been a noted increase in the number of reported cases of fraud involving gold dealings and/or exports in the country. The fraud is committed by persons passing with huge quantities of gold available at discounted prices. Their victims have been unsuspecting Kenyans and foreign nationals. The international dimension to the fraud is giving Kenya a negative and unwelcome reputation in the world of minerals and mining.

Most of the fraudulent cases invoIve;-

Kenyan citizens and other foreign nationals mainly operating from Nairobi

The use of false mineral dealers' licences, export permits and assay reports purported to have been issued by the Ministry of Mining.

Use of assay certificates purportedly issued by the Ministry of Mining where the assay contents are altered to show huge quantities of gold to have been tested and grade(s) verified.

Sale of gold allegedly coming from neighbouring countries or gold allegedly stored in custom’s warehouses or in transit.

Sale of tens or hundreds of kilogrammes of gold or gold nuggets, mainly comprising of fake gold or brass.

Promotion of gold refining services within Nairobi's upmarket estates as bait where perpetrators showcase their gold stock and from which tiny samples of genuine gold are extracted for laboratory tests.

Demands of hefty upfront payments to facilitate the processing of export documentation with relevant authorities often running into millions of shillings, after which no export is done or the consignment turns out to be fake gold (mostly brass) and the conmen switch off further communication with the victims.

In order to protect unsuspecting citizens and foreigners, members of the public are hereby advised to contact the Ministry of Mining for verification of;

Persons claiming to be mineral dealers.

Mineral dealers licences, mineral export permit, assay reports, laboratory reports and any other documents alleged to have been issued by the ministry.

Below is the list of companies licensed to carry out gold dealings:

Aurical Kenya Limited

Below is the list of companies licensed to carry out mineral dealings other than gold:

Modogashe Agencies Limited

Match Electricals Limited

In case of need for further information or clarification, please contact the Ministry of Mining through the following contacts: Email: csQmining.oo.ke or telephone: 020 272 7434 or 020 230 0190.